S&P 500 futures are down two points, trading slightly below fair value. Nasdaq 100 futures are up 29 points, trading 0.2% above fair value. Dow Jones Industrial Average futures are down 72 points, trading 0.2% below fair value.
This morning, stock futures are mixed with little change. Nasdaq 100 futures are higher due to premarket gains in some big tech stocks. Treasury yields are up, which is limiting early trading for equities. The 10-year note yield is up five basis points to 4.26%, and the 2-year note yield is up four basis points to 4.72%.
Today's economic data will include the June NY Fed Empire State Manufacturing Index, released at 8:30 ET.
In corporate news:
- Apple (AAPL, Financial): New AI features will extend into next year.
- Autodesk (ADSK, Financial): Starboard Value bought a $500 million stake.
- Tesla (TSLA): Stopped Cybertruck deliveries due to a wiper issue.
- Southwest (LUV): Flight came within 400 feet of the ocean; regulators are investigating.
- Wells Fargo (WFC): Renegotiating a startup deal after a revenue forecast error.
- Best Buy (BBY, Financial): Upgraded to Buy from Neutral at UBS.
- Walt Disney (DIS): "Inside Out 2" made $155 million at the US box office; Deadpool & Wolverine to release in China next month.
- Taiwan Semiconductor Manufacturing Co (TSMC): Planning a price increase for 3nm products.
- Steel Dynamics (STLD): Expects Q2 EPS below consensus.
Reviewing overnight developments:
Today's News
The Securities and Exchange Commission (SEC) is currently investigating Elon Musk's delayed disclosure of his Twitter stock purchases before his takeover of the company. Musk, along with his adviser, reportedly ignored a rule requiring the revelation of ownership once it surpassed 5% of Twitter's shares. Instead, Musk waited until he owned more than 9% and had an offer to join Twitter's board. This delay could potentially be seen as an attempt to prevent Twitter's share price from rising while he accumulated his stake, which could lead to accusations of civil fraud by the SEC.
Arm Holdings (ARM, Financial) and Micron (MU, Financial) saw positive movement as Bank of America raised its price target for both companies. This comes as generative artificial intelligence starts making its way to consumer devices like PCs and phones. Analysts believe this trend will drive a faster upgrade cycle in consumer hardware, benefiting processor and memory companies.
Stellantis (STLA, Financial) received favorable attention from Bank of America after updating its capital plan. The automaker aims to achieve target liquidity levels of 25% to 30% of revenues for the medium term and shift focus to capital efficiency. This strategy is expected to support strong shareholder returns and market share gains against competitors like General Motors (GM, Financial), Ford Motor (F, Financial), Honda Motor (HMC, Financial), and Toyota (TM, Financial).
Apple (AAPL, Financial) shares rose slightly on news that the next version of the Apple Watch, expected to be known as the Series 10, will feature several changes. These include larger screen sizes, a thinner design, and potentially new case colors. Additionally, some components will be manufactured using 3D printing, supplied by Chinese company Bright Laser Technologies.
Autodesk (ADSK, Financial) shares climbed as much as 4% after activist investor Starboard Value took a $500 million stake in the company. Starboard is pushing for changes, including improved margins, board shakeups, and greater transparency. Meanwhile, Best Buy (BBY, Financial) saw a rise of over 3% following an upgrade from UBS, which believes the retailer will benefit from a consumer appliance upgrade cycle and new product offerings.
Shares of The Aaron's Company (AAN, Financial) surged by 32% premarket after announcing an acquisition deal with fintech organization IQVentures Holdings. The acquisition, valued at $10.10 per share in cash, represents a 34% premium over the company's recent closing price. The transaction was unanimously approved by Aaron's board of directors.
TDK (OTCPK:TTDKY) has developed a new material for a next-generation solid-state battery aimed at wearable devices. This new technology, which boasts an energy density of 1,000 Watt hours per liter, is expected to replace existing coin cell batteries and reduce environmental impact. The batteries are intended for use in devices like wireless earphones, hearing aids, and smartwatches.
Cheniere Energy (LNG, Financial) declared a quarterly dividend of $0.435 per share, maintaining its previous payout. The dividend is payable on August 16, with a record date of August 9. Cheniere's dividend yield stands at 1.12%, and the company continues to show strong financial performance.
Costco Wholesale Corporation (COST) is trading near its all-time high, with several catalysts identified that could propel shares even higher in 2024. Analysts anticipate a membership fee increase, which could accelerate EBITDA growth. Additionally, the company is sitting on over $10 billion in cash, raising speculation about another special dividend announcement.
Atara Biotherapeutics (ATRA) announced a 1-for-25 reverse stock split, effective June 20, 2024. This move aims to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share. The reverse split will reduce the number of shares outstanding from 122.6 million to 4.9 million, subject to adjustment for fractional shares.
